Archive - Jun 24, 2009

For a good flashback of what the massively overpaid analytical experts at Citigroup (which we all now own, thank you Mr. President) thought of CMBS in August 2007, please see below.

Inflation expectations last seen at a local Duane Reade buying lots of vaseline.

Inflation expectations last seen at a local Duane Reade buying lots of vaseline.

Inflation expectations last seen at a local Duane Reade buying lots of vaseline.

Developing story: The Swiss - US monetary war is now officially on.

And in other news, documents obtained by the US House Committee indicate apparent dissension among senior Fed officials about BOFA bailout, impact on Fed's bal. sheet. Obama soon to nominate BB for Dictator Czar (yes, yes, I get it).
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eLuxury is finished - another example of the retail collapse starting to reach ever higher into the "aspirational" segment.

eLuxury is finished - another example of the retail collapse starting to reach ever higher into the "aspirational" segment.

eLuxury is finished - another example of the retail collapse starting to reach ever higher into the "aspirational" segment.

So much for the "wildly successful" 2 Yr UST auction yesterday. If you bought in: congrats - you are now under water. Looks like the 2007 special Goldman 8x leveraged HY bond issue "flip 'em" game has now moved to front end Treasuries.

So much for the "wildly successful" 2 Yr UST auction yesterday. If you bought in: congrats - you are now under water. Looks like the 2007 special Goldman 8x leveraged HY bond issue "flip 'em" game has now moved to front end Treasuries.

So much for the "wildly successful" 2 Yr UST auction yesterday. If you bought in: congrats - you are now under water. Looks like the 2007 special Goldman 8x leveraged HY bond issue "flip 'em" game has now moved to front end Treasuries.

Everyone's favorite Goldman REIT analyst is still not downgrading CBL to a Conviction List Sell. In fact, Habermann is doing all he can to salvage whatever he can. That being said, we give this stock at most 3-4 weeks before it gets whacked if not to a Sell to at least a "Conviction List" Hold.

From yesterday's CBL update report:

CBL: Still see long-term value amid sell-off; reiterate Buy

The FDIC announced a proposed extension of the first of many alphabet soups currently propping up the banking system. In this case, it is the Transaction Account Guarantee (TAG) component of the TLGP program. The proposed extension (the first of maaaaany) will push the maturity from December 31, 2009 to June 30, 2010. From the report:

UK faces quite considerable headwinds
UK banking system not in strong position to lend
UK recession put downward pressure on inflation
BOE has bought GBP 96 billion of assets in APF
"If you withdraw stimulus too quickly face risk of renewed downturn"
"Obvious first step to tighten policy is to raise bank rate, not on verge of doing this"
"More concerned about below target inflation than deflation"
"We do need more powers to control the growth of financial sector"

Deja vu all over again: failed green shoot, no volume, high beta break out, one or two brokers gunning the SPY (here's looking at you 85 Broad): the tried and true script over the past 3 months seems to have a little life left in it still, with all rational cash players sitting on the sidelines as always, doing Starbucks breaks every hour and waiting for the release of RenTec's results indicating Medallion made double the combined negative "return" of REIF and RIFF (and JPM torn between trading for the latter and its own Highbridge).